- As reported by Bitcoinist previously, Bitcoin suffered a correction after peaking above $12,400 on Monday.
- The cryptocurrency has since suffered a retracement, falling in tandem with the price of gold. BTC now trades at $11,800 as of this article’s writing.
- BTC remains below the pivotal $12,000 horizontal level, which acted as support and resistance on multiple occasions over the past few weeks.
- Bitcoin’s correction initially shocked bulls.
- But positive sentiment has quickly returned to Crypto Twitter, with many calling for a return to levels above $12,000.
- They cite a confluence of technical and fundamental trends suggesting the uptrend is intact.
Is Bitcoin’s Uptrend Intact? Many Analysts Think So
Despite the technical damage Bitcoin suffered after dropping below $12,000, analysts remain optimistic about the prospects of the leading cryptocurrency.
One analyst shared the chart below after the worst of the correction. The chart shows that Bitcoin actually bounced off a pivotal diagonal uptrend that has held since the end of July. The level stretches back to $11,000.
“Looks like the $BTC demand is still in tact. Price below this diagonal being eaten up. Great point of failure for more downside given the validity of the line.”
BTC holding this level suggests it remains in an ascending triangle formation. The formation predicts that Bitcoin will eventually break to $13,000 should it validate the triangle by holding above $12,000.
Chart of BTC's price action over the past few weeks with analysis by trader Cold Blooded Shiller (@Coldbloodshill on Twitter). Chart from TradingView.com
This optimism was echoed by a swath of other analysts.
Another noted that since Bitcoin held the $11,600 range, there is a good likelihood the price trend reverts higher in the coming days: “$BTC Basically I’m long and will close if we break below. Low TF is noise and higher TF structure is still bullish – higher highs and lows.”
Also showing BTC still has strength are technical indicators.
Commenting on the On Balance Volume indicator, which shows the flow of capital in markets, one trader said that it seems that there’s capital flooding into Bitcoin:
“OBV is starting to look promising. Buy-pressure is evident over the last 2 hours ever since putting in the day’s lows. $BTC longs in this region may prove to be rewarding over the coming days/weeks.”
Fundamentals Also Intact
The fundamentals of the cryptocurrency market are also intact, analysts argue.
Per previous reports from Bitcoinist previously, digital asset manager Charles Edwards argued that it’s hard to be bearish on Bitcoin. This is due to a confluence of fundamental factors, which includes but isn’t limited to:
- Bitcoin has been adopted by Dave Portnoy of Barstool Sports, who has a following of over a million.
- The Federal Reserve is still doing work on a digital dollar project.
- Tether’s market capitalization is increasing at a rapid rate.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Here's Why Analysts Remain Bullish After Bitcoin Slipped Below $12,000